N.J. Considers Hiring Firm for School-Construction Swap Plan

AUTHOR(S)

Braun, Martin Z.

PUB. DATE

November 2002

SOURCE

Bond Buyer;11/26/2002, Vol. 342 Issue 31521, p1

SOURCE TYPE

Trade Publication

DOC. TYPE

Article

ABSTRACT

Reports that New Jersey is considering hiring a politically connected Pennsylvania financial advisor to devise a multi-billion dollar forward swap plan for the state's school construction bond program as of November 2002. Consideration of the pros and cons of a forward swap of the school construction debt by the New Jersey Economic Development Authority and state treasury officials.

Discusses ways for companies to withdraw from a swap deal. Termination of contract; Assigning the contract to another counterparty offering a better price; Neutralizing the swap by arranging a mirror transaction.

Reports on the plans of New Jersey to bid $2.5 billion in forward swaps starting on April 17 and 18, 2003. Purpose of the plans; Pricing of bonds by the state; Companies bidding for the swaps; Co-manager of the state's bids.